Our SILAC Evolve Annuity Review (Overall)
We would not recommend the SILAC Evolve or Evolve Bonus annuity. They offer lifetime income, an upfront bonus, and access to extra withdrawals for qualifying health conditions. Those features sound appealing, but the promise depends on an insurance company that falls below our financial strength standard. That matters when you are counting on it to pay you for the rest of your life.
The Evolve series consists of fixed indexed annuities with seven-, ten-, and fourteen-year surrender periods and an automatically included lifetime withdrawal benefit. Evolve and Evolve Bonus both include a premium bonus. The amount, available options, and terms depend on the product and state.
- Primary purpose: Guaranteed lifetime withdrawals, subject to the contract rules and SILAC’s ability to pay.
- Versions: Evolve and Evolve Bonus, with seven-, ten-, and fourteen-year withdrawal charge periods.
- Lifetime income: Level or increasing withdrawal options, with single or joint coverage.
- Cost: An annual spread applies to interest credits for the lifetime benefit.
- Access: Generally up to 5% of account value annually after the first year, plus qualifying required minimum distributions.
- Other features: Premium bonus, health-related provisions, and spousal continuation, subject to contract and state rules.
SILAC Evolve Annuity Alternatives
Before you lock your retirement savings into Evolve, compare the guaranteed income and financial strength of other insurers. Call us at (770) 755-1565 or use the tool below for a free comparison.
Our Professional Opinion on SILAC Evolve Annuities
SILAC is a company we do not recommend. Its AM Best rating is B (Fair), below our A− minimum. We would not put retirement money into a long-term income annuity from SILAC when stronger insurance companies offer lifetime income alternatives.
An income rider is only as good as the company standing behind it. A big bonus and a lifetime income promise do not make up for a rating that falls below our standard. We would compare the actual guaranteed income from A− or better insurers instead of getting distracted by the biggest bonus or income value.
We also do not like that excess early withdrawals can trigger surrender charges, a market value adjustment, and recovery of interest and bonus. That combination stinks if your plans change and you need to get out. And an ordinary 5% free withdrawal after year one is less access than the 10% allowance available with many competing annuities.
If you already own Evolve, do not surrender it solely because of the rating. Ask for the current surrender value, remaining charges, your income guarantee, and a comparison of your options before making a move.
What We Like
- Lifetime income: Eligible withdrawals can continue for life even if the account value runs out, provided the contract rules are followed.
- Single or joint coverage: You can compare income for one life or two.
- Health-related access: Qualifying care events can unlock additional withdrawals or waive certain charges.
- RMD access: Qualifying required minimum distributions can be taken from the first year without withdrawal charges under the policy terms.
- Upfront bonus: Both series credit a premium bonus, although early-exit recovery can reduce what you keep.
What We Don’t Like
- SILAC’s B rating: We do not like relying on an insurer below our A− standard for a lifetime promise.
- Limited ordinary liquidity: The 5% annual allowance after the first year is not much if you need a larger withdrawal.
- Several costs can apply when you leave early: A surrender charge, MVA, and recovery of interest and bonus can all affect a chargeable withdrawal.
- Long commitments: The seven-, ten-, and fourteen-year versions can tie up money for a long time.
- Income growth is not the same as cash growth: The income value is used to calculate lifetime income and cannot be cashed out as a lump sum.
How Evolve and Evolve Bonus Work
Both versions credit a premium bonus and offer a fixed interest strategy and indexed interest strategies. The fixed rate is declared annually. Indexed interest depends on the strategy and its rules, which can include a cap, participation rate, or spread. The index itself does not directly take your money down when it falls, but an indexed strategy may credit no interest for a term.
A bonus is not a reason to buy by itself. Compare the actual guaranteed income, account value, early surrender value, and the amount your beneficiary would receive. A larger bonus can come with a longer commitment or different crediting terms, and a withdrawal that exceeds the free amount can trigger recovery of bonus and credited interest.
How the Lifetime Income Benefit Works
Evolve automatically includes a guaranteed lifetime withdrawal benefit. After the one-year waiting period, you can choose eligible lifetime withdrawals for yourself or joint withdrawals that continue while either covered spouse is alive. If you follow the rules, payments can continue even after the account value reaches zero.
The annuity tracks an income value used to calculate the benefit. It starts with the initial premium and bonus. Its income credit combines the interest credit percentage before the Evolve spread with the rollup rate for that policy year. Those credits stop when lifetime withdrawals begin or after 30 years, whichever comes first. Because part of the formula depends on interest credited, do not mistake an illustration for a guaranteed future income or account balance. Withdrawals can reduce the income value.
The income value is not the cash you can withdraw and is not the death benefit. Ask for the guaranteed annual payment at your intended start date, alongside the account value and cash surrender value. Compare other contracts using the same deposit, start date, and single- or joint-life coverage.
The level option generally starts higher. The increasing option generally starts lower and has an opportunity to increase based on future interest credits. Increases are not automatic just because the option is called increasing. Compare how much less you start with and how long it would take to catch up under realistic scenarios.
The 1.50% Annual Spread
The lifetime benefit has an annual spread of 1.50% of account value. SILAC applies it against interest credited for the policy year, and the spread cannot exceed that year’s interest credit. This is a real cost to your growth even though, under that provision, the spread alone will not reduce the account below the amount before that year’s interest credit.
For example, if the calculated spread is $1,500 and the policy earns $1,000 in interest for the year, the spread is limited to that $1,000 credit. You would keep no interest from that year before considering withdrawals or other applicable contract provisions. Actual results depend on the policy’s calculation and timing.
Withdrawals, Surrender Charges, and the MVA
After the first policy year, you can generally take up to 5% of the account value measured at the most recent anniversary without a surrender charge, market value adjustment, or interest and bonus recovery. Qualifying lifetime and wellness withdrawals have their own rules. An excess withdrawal can affect the future income guarantee even when a withdrawal charge is waived.
If you take more than the allowed amount during the surrender period, a surrender charge, a market value adjustment, and recovery of credited interest and bonus can apply. The MVA can increase or decrease the amount paid. Recovery is not limited to the bonus, so do not assume all previously credited interest is available if you surrender early.
A 14-year surrender period is a long time to find out that your money is harder or more expensive to access than expected. Keep emergency funds elsewhere and get the actual surrender and recovery schedules before you buy.
Required Minimum Distributions
For a qualified contract, eligible required minimum distributions can be taken from the first policy year and treated as free withdrawals even if they exceed the ordinary 5% allowance. Confirm the calculation and policy rules. A waiver of surrender charges does not automatically mean every withdrawal leaves the lifetime income calculation unchanged.
Health Benefits and Wellness Withdrawals
Evolve includes provisions for qualifying nursing-home confinement, terminal illness, and home health care, subject to waiting periods, eligibility, and state availability. A separate wellness provision may increase withdrawals for up to five years if you cannot perform two of six activities of daily living and meet the policy requirements.
We like having additional choices when health changes, but do not mistake these benefits for comprehensive long-term care insurance. The benefits have limits and conditions, and withdrawals use your annuity value. Compare dedicated care coverage if paying for care is a major concern.
Death Benefit and Spousal Continuation
Before annuitization, the beneficiary generally receives the full account value at death. That can include the credited premium bonus, subject to policy terms. The income value is not added on top. If withdrawals have depleted the account, the amount left to beneficiaries may be reduced or eliminated.
An eligible spouse may be able to choose spousal continuation. That is different from electing joint lifetime withdrawals, which determines whose lives the income covers. Check both decisions before buying.
How Evolve Compares With Other Annuities
- Other lifetime income annuities: We prefer comparing guaranteed payouts from insurers rated A− or better. Review survivor benefits, access, and costs alongside the actual payment.
- MYGAs: A MYGA guarantees an interest rate for a set term. Compare current fixed annuity rates if predictable growth is the goal; taking interest alone does not guarantee lifetime income.
- Accumulation-focused fixed indexed annuities: If you do not need lifetime income, an annuity without an income-benefit spread may be a better comparison. Review crediting terms and surrender provisions.
- RILAs and variable annuities: These can expose your account to market losses. We think taking market risk while limiting upside in a RILA is a lousy trade when lifetime income is the goal.
Who Should Look Elsewhere?
We would look elsewhere for new retirement savings because SILAC falls below our financial strength standard. Evolve is especially poor for money you may need beyond the free withdrawal allowance or for anyone who does not need the lifetime benefit. If you need lifetime income, compare a stronger insurer and the guaranteed payment available for your situation.
Our Final Verdict
We would pass on the SILAC Evolve series. The lifetime income and health features have value, but the insurer’s B rating, restricted access, and potential recovery of interest and bonus are too much for us. There are other ways to pursue lifetime income without accepting a company rating below our standard.
Contact The Annuity Expert for a free comparison and quote. We can help you compare income, financial strength, and access, or review an existing annuity before you decide what to do. Call (770) 755-1565 or fill out the form below.
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